Steiner named director of regional economic engine

Tuesday

Jan 26, 2010 at 5:02 AM

By BRYAN SCHAAFThe Daily RecordWOOSTER " Mike Steiner built his own insurance company from the ground up more than 20 years ago.Now retired, Steiner hopes his magic touch will rub off on his newest project. That's because if Steiner is successful, an entire 16-county area in Northeast Ohio " including Ashland County " will reap the rewards.Steiner has been named executive director of the Northeast Ohio Regional Center, and will oversee the center's EB5 green card program seeking to match foreign investors with startup projects.NORC received approval in June to operate an EB5, which is a governmental program that provides 3,000 visas each year for foreigners who make large investments in designated areas. The program was established by the federal government in 1990 as an opportunity for immigrants to become permanent residents of the United States by investing $1 million in a business that creates 10 jobs, or $500,000 in a rural or high unemployment area.NORC includes a 16-county contiguous region " Ashland, Ashtabula, Carroll, Columbiana, Cuyahoga, Geauga, Lake, Lorain, Mahoning, Medina, Portage, Richland, Stark, Summit, Trumbull and Wayne.The basic government criteria for the EB5 status are the investment must be in a business, not a passive security such as the stock market; invested funds must be the individual's; the business must have been created after Nov. 29, 1990; or, the investment must substantially change an older business.NORC is the first EB5 center in Ohio, and Steiner is still essentially laying the groundwork for how the program will be run."Most of our involvement to date has been with the development community trying to educate them on the elements of the EB5 program," Steiner said. "In order for us to approach investors, we have to have a project ready for the market. We're not trying to create a stable of investors waiting for a project to come along."Steiner admits getting the EB5 running will be no easy task, particularly in light of some hurdles put in the program from the federal government.In particular, Steiner cited the investment requirement, which sets 20,000 as the population cutoff between requiring $500,000 or $1 million foreign investors."You've got a couple things working against you," Steiner said. "The majority of your population in some of the most devastated areas are in (metropolitan statistical areas), so most developers are focusing their attention on MSAs. On the other hand, the investor is more focused on getting his permanent visa while risking as little money as possible. We think that will make it more difficult to compete for investor dollars when we'll be in cases seeking a $1 million commitment. What we don't understand is why (Congress included the stipulation)."n Reporter Bryan Schaaf can be reached at 330-287-1645 or e-mail bschaaf@the-daily-record.com.